How distributed battery storage will surpass grid-scale storage in the US by 2020
stephen lacey | greentech media | 10 march 2016
To read the full article in Greentech Media, click here.
In 2020, America’s energy storage market will likely surpass 1.6 gigawatts -- making it 28 times bigger than it was in 2015.
The U.S. market in 2020 will be defined not just by higher volumes, but by diversity in project types. While large storage projects on the utility's side of the meter currently dominate deployments, smaller batteries in homes and businesses on the customer's side of the meter will become the biggest segment in terms of capacity in the next four years.
Alexander Pischalnikov said: “I would certainly agree that residential demand charges and other rate charges appear to be catalysts for storage and solar-plus-storage.”
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Pischalnikov pointed to Hawaii, where regulators established new net metering rules last year. One net metering tariff compensates customers at the wholesale rate, rather than the retail rate. The other self-supply option allows customers with PV and battery systems to speed up their interconnection process, but they do not get compensated for any electricity fed into the grid.
Alexander added: “Self-supply has become a pretty compelling proposition in Hawaii. Installers are very much reacting to the changing business environment, and you're starting to see more joint bundled service offerings.”
Alexander concluded: “Utilities are generally curious and interested to test the capabilities of storage. But there's still this huge amount of hype and uncertainty around the technology. We expect to see much more dialogue and many more pilots in this sector before there is a big commercial push.”